India: Mizoram Public Resource Management Program
The program was anchored on the political commitment of to fiscal reform, and the economic need for a broad program of fiscal reforms that ranges from macro measures, such as medium-term expenditure frameworks, to micro actions—ensuring reforms would result in improved service delivery.
Two loans, a $94 million program loan (now called policy-based loan) and a $6 million technical assistance (TA) loan, were extended to the Government of India. To support policy change and reform, the Asian Development Bank (ADB) approved a program loan to create fiscal space and improve health and education service delivery. The program included loan (10%) and grant financing (90%) and addressed the key issues facing the state government of Mizoram in transitioning the economy towards a more sustainable development path. The program loan modality was adopted to ensure compliance with the accomplishment of needed policy actions and conditions for the release of funds at intervals. The TA loan was designed to support the reform program by strengthening concerned institutions in state government of Mizoram to undertake the program.